Question

Porsche has enhanced power over buyers because its strong reputation makes buyers more willing to pay a premium price. this ______ rivalry, since buyers become _____ price-sensitive.

Answer 1

The correct answer is: lessens; less.

Step-by-step explanation:

The reputation of a given product leads to consumers worrying less about paying high prices for it. This is applied to expensive luxury articles or high-tech vehicles such as Porsche. Due to their reliability and balanced sports performance, customers are less price-sensitive each time which decreases the rivalry when it comes to prices only.

Answer 2

This "lessens" rivalry, since buyers become "less" price-sensitive.

Price sensitivity is how much the cost of an item influences customers' buying practices. In financial matters, price sensitivity is usually estimated utilizing the price elasticity of demand. For instance, a few buyers are not willing to pay even a couple of additional pennies per gallon for gas, particularly if a lower-valued station is adjacent.